measure the idle time variance, Cost Accounting

Assignment Help:

PH plc operates a modern factory that changes chemicals into fertilizer. Due to the the demand for  its product  is  seasonal,  the  company expects  that  there will be an average  level of  idle time equal to 20% of hours paid. This is incorporated into the companyís standard costs, and  the  standard  labour  rate  of  Rs.6.00  per  hour  paid  is  then  adjusted  accordingly.  Any difference among  the expected and  the original amount of  idle  time  is  reported as  the  ëidle time varianceí and is valued adjusted wage rate. 

1522_55.png

(a)  Measure the idle time variance and the efficiency variance for April.

(b)  (i) Using the data provided and your answer to (a) above as appropriate, prepare a percentage variance chart that determine the trend of these variances. (Use graph paper and show both variances on the similar chart.)

(c)  Explain shortly the factors that should be considered before deciding to investigate a variance. 

 

 


Related Discussions:- measure the idle time variance

Calculate direct materials used, Advertising expense $17,200 Wages expense-...

Advertising expense $17,200 Wages expense-assemblers 36,840 Depreciation expense-machines 21,480 Utilities expense-factory 21,120 Wages expense-lathe operators 23,480 Repair expens

Prepaid expenses, Expenses paid in previous of their use or consumption is ...

Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

Regression analysis, what is regression analysis and its applicability to t...

what is regression analysis and its applicability to the course of cost accounting

Critical thinking about cost flow, Critical Thinking about Cost Flow It...

Critical Thinking about Cost Flow It is simple to overlook an important aspect of cost flow within a manufacturing operation. If you see that have taken note of an important co

Direct materials total variance, Direct Materials Total Variance Direc...

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

Finance and logistics, responsibility of director of finance and logistics

responsibility of director of finance and logistics

Balance sheet, The following information is provided to you concerning Lydi...

The following information is provided to you concerning Lydia Ltd as at 30 June 2012.  Assume a company tax rate of 30%. (i) The balance of rent received in advance in the balan

Compute the cost of good sold and the ending inventory value, Beginning inv...

Beginning inventory on March 1 consisted of 2,000 units each costing $11.20. During March, the following was purchased for inventory: Date Purchase

Methods of allocating service costs, Methods of Allocating Service Costs ...

Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd